MeitY Notifies Rs 62,500 Cr MPMS Scheme to Boost Handset Production in India

Key facts

• The Ministry of Electronics and Information Technology (MeitY) notified the Mobile Phone Manufacturing Scheme (MPMS) with a budgetary outlay of ₹62,500 crore.
• The MPMS will operate for five years from FY 2026-27 to FY 2030-31.
• The scheme aims to increase global competitiveness, raise domestic value addition, and strengthen indigenous manufacturing capabilities.
• It has two target segments: TS1 for mobile phone manufacturing and TS2 for Indian mobile phone brands.
• Under TS1, incentives range between 2.25% and 5%.
• Under TS2, Indian brands are eligible for a 5% incentive, with an additional 3% for Indian design and R&D.
• An additional incentive of up to 1.5% is available for domestic sourcing of key components and sub-assemblies.
• The scheme follows the completion of the Production Linked Incentive Scheme for Large Scale Electronics Manufacturing (PLI-LSEM) on March 31, 2026.